f\  II.  r-  7» 


U.  S.  DEPARTMENT   OF   AGRICULTURE, 

BUR!   \T  OF  PLANT  [NDUSTRY— Circular  No.  48. 
G  u.I.oway,  Chief  of  Bureau. 


THE  PRESENT  STATUS  OF  THE 
TOBACCO  [NDUSTRY. 


WIGHTMAN  W.  GARNER, 

I'll  I  BIOLOGIST   I  \   <   IIAIKiK  OF  TOBA<  CO    l\\  ESTIGATIONS. 


24478-  10 


WASHINGTON    :  GOVERNMENT  PRINTING  OFFICE   :    1910 


.    Dtf.XK^fflp- 


U.S.  DEPOSITORY 


BUREAU  OF  PLANT  INDUSTRY. 


[Cir.481 

2 


Chief  of  Bureau,  Bevekly  T.  Galloway. 
Assistant  Chief  of  Bureau,  G.  ITarold  Powell. 
Editor,  J.  E.  RoCKWl  LL. 
Chief  Clerk.  JAMES  E.  Jones. 


THE  PRESENT  STATUS  OF  THE  TOBACO 

INDUSTRY. 


INTRODUCTION. 

Tobacco  has  occupied  an  important  position  as  a  money  crop  in  a 
number  of  the  Eastern  States  since  the  earliest  days  of  the  colonies. 
h  is  a  crop  which  is  remarkably  sensitive,  as  regards  quality,  to  the 
conditions  under  which  it  grows,  and  the  requirements  for  producing 
the  liner  grades  are  quite  exacting.  This  fact  limits  the  output  of 
stricthj  first-class  tobacco,  so  that  this  product  frequently  com- 
mands a  high  price  in  the  market  as  compared  with  other  crops. 
The  high  prices  in  some  cases  warrant  intensive  sj'stems  of  produc- 
tion, and  the  discovery  of  new  varieties  or  new  methods  of  production 
iii.iv  bring  large  profits  to  growers  in  limited  areas  or  in  larger  areas 
for  short  periods  of  time.  In  even  such  case,  however,  the  history 
of  the  industry  shows  there  has  been  a  readjustment  of  conditions, 
resulting  usually  from  overproduct  ion,  bringing  about  a  lower  level  of 
prices,  which  may  leave  only  a  fail-  margin  of  profit,  or  in  extreme 
cases  no  profit  at  all. 

The  demand  for  new  crops  in  various  sections,  brought  about  by 
tin'  needs  for  diversification  in  connect  ion  with  improving  crop  yields, 
controlling  diseases  and  insects,  and  changes  in  economic  conditions 
due  to  other  causes,  has  served  in  many  cases  to  direct  attention  to 
the  possibility  of  introducing  tobacco  culture  into  new  territory  as  a 
money  crop,  [n  some  instances,  moreover,  the  abnormally  large  profits 
obtained  on  special  types  of  tobacco  grown  on  a  comparatively  small 
scale  have  led  to  the  utilization  of  these  results  in  the  exploitation 
of  large  tracts  of  land  thought  to  be  adapted  for  t  he  specialty  pe, often 
with  the  result  of  disappointment  and  financial  loss  to  those  who  are 
induced  to  invest  in  these  enterprises. 

In  considering  the  advisability  of  undertaking  the  culture  of  to- 
bacco in  any  locality,  especially  in  new  territory,  there  are  several 
important  facts  concerning  the  industry  which  should  be  kept  in 
mind,  and  it  is  mainly  for  the  purpose  of  bringing  these  facts  to  t  In- 
attention of  the  prospective  grower  that  this  publication  has  been 
prepared. 

[Oil 


4  PRESENT    STATUS    OF    TOBACCO    INDUSTRY. 

DEVELOPMENT    AND    SPECIALIZATION    OF    THE    TOBACCO 

INDUSTRY. 

The  culture  of  tobacco  as  a  commercial  crop  began  in  Virginia  in 
1612  and  soon  became  so  profitable  that  food  crops  were  neglected 
and  drastic  regulations  were  required  to  control  the  output.  The 
industry  promptly  spread  into  Maryland,  and  when  Kentucky  was 
settled  tobacco  at  once  became  the  principal  commodity  in  that 
territory,  whence  it  was  carried  into  Tennessee  and  Missouri.  To- 
bacco culture  was  early  introduced  into  North  Carolina  from  Virginia, 
and  about  1850  in  the  former  State  it  received  a  great  impetus  from 
the  discovery  of  a  new  process  of  curing  by  means  of  artificial  heat. 
About  1890  this  new  phase  of  the  industry  became  commercially 
important  in  eastern  South  Carolina. 

The  New  England  colonists  also  early  began  the  culture  of  the 
crop,  but  it  did  not  become  of  much  commercial  importance  until 
about  the  middle  of  the  last  century.  At  this  time  the  value  of  the 
tobacco  produced  in  that  section  for  the  manufacture  of  cigars  began 
to  be  recognized,  and  the  industry  became  exceedingly  profitable. 
From  New  England  the  growing  of  these  cigar  types  was  extended 
into  Pennsylvania  and  New  Vork  and  thence  into  Ohio  and  Wiscon- 
sin. About  1890  the  production  of  cigar  tobaccos  from  Cuban  and 
Sumatran  seed  began  to  assume  importance  in  Florida  and  southern 
Georgia. 

The  marked  effects  of  soil  and  climatic  conditions  on  the  character 
of  the  tobacco  produced  were  early  recognized,  and  these  influences, 
together  with  improvements  in  methods  of  growing  and  handling, 
have  brought  about  important  economic  readjustments,  resulting 
finally  in  a  highly  specialized  industry.  The  first  tobacco  produced 
in  Virginia  naturally  found  a  market  in  the  mother  country,  England, 
while  the  western  product  went  to  New  Orleans  and  thence  into 
France  and  other  European  countries.  The  discoveiy  of  distinc- 
tively new  types,  such  as  Burley,  and  of  new  methods  of  production, 
as  with  the  yellow  or  flue-cured  tobacco  of  Virginia  and  the  Carolinas, 
has  modified  to  some  extent  the  demands  of  foreign  markets,  but, 
nevertheless,  much  the  same  territory  has  continued  for  many  gen- 
erations to  supply  the  principal  needs  for  export  purposes.  The 
demands  for  domestic  consumption,  as  chewing  and  smoking  tobaccos, 
have  been  modified  to  a  greater  extent,  perhaps,  by  these  factors,  but 
here  again  present  requirements  are  firmly  established  and  can  be 
changed  only  under  strong  influences. 

The  requirements  for  cigar  tobacco  are  very  exacting,  differing 
essentially  from  those  for  other  types  <•!'  leaf;  consequently  the  pro- 
duction of  such  tobacco,  in  some  of  its  phases,  necessitates  culture 
of  a  veiy  intensive  character.     Certain  foreign  types  have  come  to 

[Cir    is| 


PRES1  NT  STATUS   (11      TOBACCO   INDUSTRY.  .> 

be  considered  as  standards  of  excellence  by  which  all  high-grade 
domestic  types  musl  l>e  measured.  For  manj  years  efforts  have 
been  made  to  reproduce  these  foreign  types  in  certain  sections  of  the 
country,  and  in  some  cases  these  efforts  have  been  largely  successful. 
The  history  of  the  tobacco  indust  ry  in  i  his  country  furnishes  abun- 
dani  proof  of  the  fact  thai  tobacco  of  %ny  given  properties  or  quali- 
ties can  only  be  produced  under  certain  fixed  conditions  of  soil, 
climate,  etc.,  and  all  of  the  established  tobacco  sections  produce 
types  which  are  recognized  by  the  trade  as  possessing  certain  definite 
characteristics  adapted  to  specific  purposes.  One  section  may  pro- 
duce tobacco  "jnst  as  good"  as  another,  yet  differing  from  it  suffi- 
ciently to  prevent  its  being  used  for  the  same  purpose. 

THE   DIFFERENT  CLASSES  OF  TOBACCO. 

\-  has  already  been  stated,  variations  in  soil  and  climatic  condi- 
tions combined  with  differences  in  methods  of  production  give  rise 
to  certain  well-defined  types,  and  on  these  are  based  present  market, 
requirements.  The  following  classification,  while  not  intended  to  be 
complete,  is  fairly  representative  of  the  industry  as  a  whole. 

i  [GAR    TYPES. 

Broadly  speaking,  there  are  two  principal  areas  producing  cigar 
tobacco  between  which  lie  a  group  of  Slates  producing  practically 
all  of  the  manufacturing  and  export,  types.  The  northern  cigar- 
tobacco  area  includes  a  large  poll  ion  of  the  Connect  icul  Valley  in  t  he 
States  of  Connecticut  and  Massachusetts;  two  districts  in  New  York 
embracing  Onondaga  and  Chemung  and  Tioga  count  ies,  respeel  ively, 
with  portions  of  adjoining  counties  in  each  case;  Lancaster  and  ad- 
joining counties  of  Pennsylvania;  Montgomery,  Miami,  and  contigu- 
ous counties  of  Ohio,  and  portions  of  southern  and  western  Wiscon- 
sin. The  southern  cigar-tobacco  area  includes  Gadsden  County, 
Florida,  and  the  adjoining  county  of  Decatur,  Georgia,  with  scattering 
plantations  in  adjacent  counties,  small  sections  in  a  few  counties  of 
southern  Alabama,  and  Anderson  and  Nacogdoches  counties,  Texas. 

There  are  three  subtypes  of  cigar  leaf  corresponding  to  the  three 
components  of  the  cigar,  namely,  wrapper,  binder,  and  filler. 

\\  i:  Mil  i:     w  l>    BINDER 

The  wrapper,  which  y;ivc<  finish  to  the  cigar,  is  the  highest  priced 
tobacco  produced,  and  lor  it  the  trade  requirements  are  most  exact- 
ing. Color,  burning  qualities,  grain,  texture,  and  elast  icity  ar< 
important  factors.  The  product  imported  from  Sumatra  is  the 
standard  and  commands  high  prices.  The  hulk  of  the  domestic 
cigar-wrapper  leaf  is  now  produced  on  the  light  soils  of  the  Connecti- 

[CIi 


6  PRESENT    STATUS    OF    TOBACCO    INDUSTRY. 

cut  Valley  and  western  Florida.  Thorough  experience  and  good  judg- 
ment in  the  growing  and  handling  of  this  tobacco  from  beginning  to 
end  are  essential  to  success.  The  average  yield  to  the  acre  in  the 
Connecticut  Valley  is  about  1,600  pounds.  In  Florida  both  Cuban 
and  Sumatran  types  are  planted,  but  the  latter  is  believed  to  produce 
the  best  wrapper.  The  yield  to  the  acre  averages  about  1,000 
pounds  for  the  Sumatran  and  700  to  800  pounds  for  the  Cuban. 

Binder  leaf  may  be  considered  as  a  lower  grade  of  wrapper,  and  the 
imperfect  leaves  from  wrapper-producing  types  are  largely  used  for 
binder  purposes.  The  requirements  for  binder  are  less  exacting, 
especially  as  regards  color,  than  for  wrapper,  and  the.  leaf  is  generally 
heavier  than  the  wrapper  grade.  Wisconsin  is  usually  classed  as  a 
binder-producing  State,  for  the  reason  that  a  large  portion  of  the 
output  is  especially  adapted  for  use  as  binder.  The  yield  to  the  acre 
in  this  State  averages  1,200  to  1,300  pounds. 

THE    SHADE-TOBACCO    INDUSTRY. 

A  few  years  ago  it  was  found  in  Gadsden  Count}',  Florida,  that 
Cuban  and  Sumatran  seed  when  grown  under  an  artificial  shade  of 
coarse  cheese  cloth  or  wooden  slats  yielded  a  much  higher  percentage 
of  wrapper  leaf  than  when  grown  by  the  ordinary  method  in  the  open 
field.  The  market  price  for  this  product  warranted  the  intensive 
methods  required  in  its  production,  and  the  industry  developed  with 
extreme  rapidity  in  this  county  and  in  Decatur  County,  Georgia,  unt  il 
the  annual  output  reached  several  million  pounds.  For  the  past  year 
or  two,  however,  there  has  been  a  marked  decline  in  market  prices,  and 
as  a  result  the  acreage  has  been  much  decreased. 

For  a  time  the  prices  obtained  by  the  growers  left  a  good  margin 
of  profit,  but  at  present  the  market  price  is  little,  if  any,  above  the 
cost  of  production.  The  average  yield  to  the.  acre  has  been  about 
1,000  pounds. 

Tobacco  is  also  being  grown   under  artificial  shade  to   a   limited 

extent  in  Connecticut,  the  Cuban  type  giving  the  most  satisfactory 

results. 

in. lei:  leaf. 

Theoretically,  each  plant  of  the  cigar  type  produces  wrapper, 
binder,  and  filler,  the  best  lower  and  middle  leaves  serving  for  wrapper 
and  binder  and  the  remainder,  especially  the  heavy  upper  leaves, 
being  used  as  filler.  The  prime  requirement  for  filler  tobacco,  how- 
ever, is  flavor  and  aroma,  and  here  the  Cuban  (usually  called  Havana) 
is  the  standard  of  excellence.  The  best  filler-producing  soils  gener- 
ally give  a  product  too  heavy  for  use  as  wrapper  or  hinder,  though  a 
small  percentage  of  these  latter  grades  may  be  obtained.  The  bulk 
of  the  filler  crop  IS  grown  in  Ohio,  Pennsylvania,  and  New  York. 

I  fir.  48] 


PR]  -i\l    STATUS    OF    [?OBA<  <  O    INDUSTRY.  i 

Filler  leaf  is  grown  under  a  less  intensive  system  than  is  required 
for  wrapper,  and  the  tohacco  soils  of  these  States  are,  for  the  most 
part,  quite  fertile  and  well  adapted  to  diversified  farming.  Cigar- 
wrapper  tobacco  is  grown  mainly  on  soils  too  lighl  in  character  for 
producing  most  other  crops  profitably,  and  intensive  methods  with 
little  diversification  prevail.  "W i 1 1 »  filler  leaf,  on  the  other  hand,  the 
best  results  are  obtained  by  utilizing  tliis  as  the  leading  tnone}  crop 
in  a  properl}  arranged  rotation  system.  The  average  yield  of 
tobacco  to  the  acre  obtained  in  the  filler  districts  ranges  from  900  to 
1,400  pounds. 

In  western  Florida,  southern  Alabama,  and  eastern  Texas  a  cigar 
filler  is  grown  from  Cuban  seed  winch  i>  characterized  b\  its  high 
aroma.  The  soils  growing  this  type  are  less  fertile  than  those  of  the 
northern  districts,  considerably  -mallei-  yields  being  obtained. 

EXPORT  TYPES. 

The  following  dark  fire-cured  and  dark  air-cured  tobacco-  are 
know  n  as  export  t  \  pes: 

DARK    FIRE-CURED    TOBACCO. 

Westein  Kentucky  and  the  adjoining  counties  in  Tennessee,  to- 
gether with  the  Piedmont  section  of  central  Virginia,  produce  the 
greater  portion  of  the  dark  export  tobacco  which  is  cured  with  open 
fires.  This  product,  which  is  grown  mainly  on  clay  >oil>,  i^  yen 
hca\\  and  strong,  suited  only  for  export.  The  soils  producing  tins 
tohacco  are  mostly  well  adapted  to  growing  wheat,  corn,  clover,  and 
grasses,  winch  should  be  combined  with  it  in  a  rotation  system. 
When  grown  continuously  on  the  same  soil  the  tobacco  rapidly 
deplete-  the  fertility  and  its  culture  becomes  much  less  profitable. 
The  average  yield  t<>  the  acre  under  good  management  i-  about  I  .Don 
pounds.  The  soil-  of  we- tern  Kent  uek\  and  Tennessee  arc  somewhat 
stronger  than  those  of  Virginia,  and  consequently  less  fertilizers  are 
used  as  a  rule. 

MARYLAND    AND    EASTERN    OHIO    AIR-CURED    TOBACCO 

lii  several  counties  of  southern  Maryland  and  a  small  section  of 
eastern  Ohio  a  type  of  dark  shipping  tobacco  is  produced  which  is 
cured  without  the  use  of  artificial  heat.  The  bulk  of  the  crop  is 
marketed  in  Baltimore,  whence  it  is  exported  to  France  and  other 
European  countries.  The  average  yield  to  the  acre  is  about  700 
pound-. 

MANUFACTURING     II  PES. 

The  following  kind-  of  tobacco  are  known  a-  "manufacturing 
i  \  pes: '" 

[Cir   48] 


8  PRESENT   STATUS    OF    TOBACCO    INDUSTRY. 

BURLEY   TOBACCO. 

The  large  area  embraced  in  north-central  Kentucky  and  a  strip  of 
territory  bordering  on  the  Ohio  River  in  Ohio  and  Indiana,  together 
with  a  small  area  in  the  southwestern  part  of  West  Virginia,  produces 
the  bulk  of  Burley  tobacco,  used  largely  for  manufacturing  hut  also 
for  export.  It  has  thus  far  reached  its  highest  commercial  develop- 
ment in  limited  areas  in  Kentucky  and  southern  Ohio.  The  soil  is 
of  limestone  origin  and  very  fertile.  These  fine  bluegrass  soils  are 
much  more  valuable  for  general  farming  than  those  on  which  the 
heavy  shipping  types  are  grown.  As  would  be  expected,  the  average 
yield  of  tobacco  to  the  acre  on  these  soils  is  considerably  above  that 
on  lands  producing  dark  export  tobacco.  Little  or  no  artificial  heal 
is  used  in  curing  this  type. 

MARK    MANUFACTUKIXC,    TOBACCO. 

In  the  section  of  Kentucky  and  Tennessee  lying  between  the  western 
export  and  the  Burley  districts  and  in  a  few  counties  of  Virginia 
immediately  north  of  the  fire-cured  belt,  types  of  dark  manufacturing 
leaf,  cured  without  the  use  of  fires,  are  extensively  produced.  In 
i lie  northern  portion  of  the  Kentucky  area,  known  as  the  Green  River 
district,  the  conditions  governing  the  production  of  this  tobacco  are 
quite  similar  to  those  in  the  dark  export  section.  The  southern 
portion,  known  as  the  upper  Cumberland  district,  grows  principally 
the  so-called  "one-sucker"  variety.  The  yield  in  this  district  is 
somewhat  less  than  that  of  the  Green  River  district.  The  Virginia 
area  produces  the  so-called  sun-cured  tobacco  much  prized  for  the 
manufacture  of  chewing  plug,  because  of  its  fine  flavor.  The  average 
yield  is  700  to  900  pounds  to  the  acre. 

BRIGHT    FLUE-CURED    TOBACCO. 

Extending  from  the  lower  edge  of  the  dark  tobacco  belt  of  Virginia 
into  northern  and  eastern  North  Carolina  and  eastern  South  Carolina 
is  a  large  territory  producing  the  so-called  yellow  tobacco,  which  is 
cured  entirely  with  artificial  heat  introduced  into  the  curing  barn 
through  a  system  of  flues.  This  product  is  prized  especially  for 
manufacturing  purposes,  though  considerable  quantities  are  also 
exported.  The  flue-cured  tobacco  industry  has  played  a  conspicuous 
part  in  the  development  of  a  large  portion  of  the  Piedmont  section  of 
North  Carolina  and  southern  Virginia.  It  is  noteworthy  that  in  this 
section,  now  spoken  of  as  the  "old  belt  "  of  the  bright  tobacco  industry, 
the  finest  quality  of  leaf  is  produced  on  light  soils  not  well  adapted 
to  general  farming.  Mere  again,  however,  as  in  the  case  of  Burley 
tobacco,  the  rapid  extension  of  the  industry  into  eastern  North  and 
South  Carolina,  comprising  the  so-called  " new  belt, "  has  brought 
about   a  gradual  lowering  of  prices,  and   the  average  profits  to  the 

[Cir.  4S] 


PRESENT  STATUS  OF  TOBACCO  INDUSTRY.  9 

grower  are  little,  if  any,  above  those  for  most  other  manufacturing 
and  export  i  \  pes. 

The  finer  grades  are  used  as  wrappers  on  manufactured  plug  and 
command  relativelj  high  prices.  To  produce  a  high-grade  wrapper 
requires  just  the  right  sort  of  soil  and  favorable  seasons  combined  with 
skill  and  good  judgment  on  the  pari  of  the  grower.  The  yield  in  the 
old  belt  averages  700  to  800  pounds  to  the  acre,  while  in  the  new  belt, 
especially  in  South  Carolina,  the  average  yield  is  about  loo  pounds 
more  to  the  acre. 

II  RIQl    I 

This  product  is  grown  in  Si.  .lames  Parish,  La.,  on  a  small  scale, 
and  the  method  of  handling  is  unique.  It  is  highly  aromatic,  and  is 
used  mostly  for  blending  with  other  smoking  types.  Each  grower 
manufactures  his  own  product  into  packages  known  as  "carrottes," 
and  the  entire  output  is  marketed  through  one  concern.  The  yield 
averages  al I   i-">|!  pounds  to  the  acre. 

PRESENT  STATUS  OF  THE  INDUSTRY  AS  REGARDS  SUPPLY  AND 

DEMAND. 

It  has  been  pointed  out  that  the  tobacco  industry  has  become 
highly  specialized  in  that  each  of  the  recognized  tobacco-growing 
districts  produces  a  type  of  leaf  known  by  the  trade  to  possess  definite 
qualities  which  adapt  it  to  certain  specific  purposes.  These  various 
types  are  only  interchangeable  within  narrow  limits.  For  example, 
the  foreign  consumer  has  been  accustomed  for  generations  to  the 
heavy,  lire-cured  type  which  would  be  unacceptable  to  the  consumer 
of  this  country,  while  the  reverse  would  be  true  with  our  manufac- 
turing and  cigar  types. 

Thus  any  given  variety  of  tobacco  or  the  product  of  any  given 
locality  in  order  to  prove  successful  musl  secure  a  standing  before  t  he 
trade  on  its  own  merits.  In  the  majority  of  cases  this  is  likely  to 
prove  an  insurmountable  difficulty  for  a  new  variety  or  the  product 
of  a  new  locality.  On  the  other  hand,  there  is  always  opportunity 
for  the  improvement  in  quality  and  yield  of  the  recognized  standard 
types  of  leaf. 

Another  important  factor  in  the  question  of  supply  and  demand  is 
the  fact  that  the  manufacturer  of  an  established  line  of  goods  must 
be  reasonably  assured  of  an  adequate  and  permanent  source  of  supply 
of  know  n  quality  . 

It  is  apparent,  therefore,  that  there  is  a  permanent  demand  for 
more  or  less  definite  amounts  of  certain  well-established  types  of 
tobacco,  bul  as  soon  as  the  supplj  of  any  of  these  types  greatly 
exceeds  this  demand,  prices  at  oner  fall  to  a  point  where  its  production 
becomes  unprofitable.     In  the  few  cases  in  which  the  discover}   of 

It'ii     18] 


10  PRESENT    STATUS    OF    TOBACCO    INDUSTRY. 

new  varieties  or  new  methods  of  production  have  introduced  new  or 
improved  types  of  leaf,  bringing  fancy  prices  in  the  market,  the  rapid 
increase  in  their  production  has  forced  these  prices  down  to  a  point 
approaching  the  general  level  for  other  similar  types. 

Since  the  requirements  as  to  soil  and  climatic  conditions  and  meth- 
ods of  culture  and  handling  are  very  exacting  in  the  production  of  the 
finest  grades  of  leaf,  overproduction  is  most  frecpient  in  the  medium 
and  lower  grades.  By  far  the  greatest  profits  are  realized  from  the 
fancy  grades  of  the  various  types.  Nevertheless,  the  absolute  quan- 
tities of  the  finest  grades  required  by  the  trade  are  much  less  than 
those  of  the  medium  grades,  so  that  under  some  circumstances  even 
these  may  bring  relatively  low  prices. 

The  average  annual  production  of  the  various  types  of  tobacco  in 
the  United  States  in  round  figures  is  shown  in  the  following  table : 

Type  of  tobacco.  Pounds. 

(  igar  leal' 160,  000,  000 

Dark  export  (fire  cured) 210, 000, 000 

Maryland  and  eastern  Ohio  export  (air  cured ) 22,  000, 000 

Dark  manufacturing  (air  cured ) G~>, 000, 000 

Burley 190,  000,  000 

Bright  flue  cured 200,  000,  000 

I  Vrique: 200, 000 


847,  200,  000 
The  relative  quantities  of  the  several  types,  as  well  as  the  total 
amount  produced,  vary  considerably  from  year  to  year,  depending 
chiefly  on  the  character  of  the  growing  season  and  on  prevailing  mar- 
ket prices  for  the  preceding  crops.  On  the  other  hand,  market  prices 
are  of  course  strongly  influenced  by  the  available  and  also  by  the 
visible  supply.  The  output  is  thus  automatically  regulated  to  a 
large  extent  by  the  market  demands,  rising  prices  leading  to  increased 
production,  and  vice  versa.  The  important  point  to  be  observed  in 
this  connection  is  that  the  areas  which  are  at  present  producing  the 
various  types  of  tobacco  are  capable  of  enormously  increasing  their 
output  if  market  demands  should  warrant  such  increase.  With  the 
exception  of  very  limited  areas  producing  cigar-wrapper  leaf  under 
intensive  systems,  the  soils  in  the  tobacco  districts  are,  as  a  rule, 
adapted  to  the  growing  of  other  important  crops,  and  only  a  com- 
paratively small  portion  of  the  available  acreage  is  used  for  the  cul- 
ture of  tobacco.  It  is  true,  however,  that  not  all  of  this  available 
acreage  will  produce  the  liner  grades  of  leaf. 

Tobacco  is  a  luxury  rather  than  a  necessity,  so  that  the  demand, 
especially  in  the  case  of  the  higher  priced  goods,  is  very  sensitive  to 
general  financial  and  trade  conditions,  periods  of  general  business 
depression  invariably  resulting  in  a  marked  decrease  in  the  quantity 
of  tobacco  consumed. 
[CJr.  48] 


PRESENT   STATUS   OF    COBACCO    INDUSTRY.  11 

In  the  cigar  tobaccos,  efforts  to  produce  a  wrapper  leaf  to  compete 
with  the  imported  Sumatran  have  led  t<>  the  development  of  t  lie 
shade-tobacco  industry.  Because  of  the  high  cosl  of  production  this 
tobacco  dues  not  compete  with  the  medium  and  low-grade  domestic 
wrapper  grown  by  the  ordinary  methods,  so  thai  the  demand  is 
limited  and  the  acreage  necessary  to  meet  this  demand  is  very  small. 
The  annual  imports  of  wrapper  leaf  amount  to  <>nl\  about  7,000,000 
pounds.  Domestic  filler  leaf  does  not  yet  compete  successfully  with 
the  imported  Cuban.  There  is  a  fairh  constant  demand  for  good 
domestic  tiller,  but  at  prices  limited  by  fixed  retail  prices  for  domestic 
cigars.  The  demand  I'm-  these  tobaccos,  however,  is  particularly 
affected  by  general  business  conditions. 

In  the  dark  export  tobaccos  there  has  been  a  steady  increase  in 
demand  in  the  past,  hut  it  is  noteworthy  that  many  of  the  foreign 
countries  which  have  been  the  chief  importers  of  these  types  air  imw 
active  in  promoting  the  home  production  of  tobacco,  and  it  is  quite 
possible  that  future  demands  for  export  will  he  confined  more  and 
more  to  the  relatively  high  grades. 

The  consumption  of  chewing  and  smoking  tobaccos  in  this  count  ry 
show-  a  steady  increase,  and  this  of  course  has  required  increased 
quantities  of  Hurley  and  other  manufacturing  types.     On  the  other 

hand,  the  prices  of  Hurley  and  of  some  of  the  dark  air-cured  manu- 
facturing tobaccos  have  steadily  declined,  until  within  the  past  few 
years  concerted  action  has  been  undertaken  by  the  growers  to  curtail 
the  production. 

With  the  brighl  Hue-cured  tobacco,  the  product  of  t  he  old  I  >elt .  as  a 
whole,  appears  to  he  preferred  over  that  of  the  new  belt,  and  under 
(ire-rut  conditions  this  section  is  largely  dependent  on  this  producl  as 
a  money  crop.  The  greater  portion  of  the  new  belt  is  adapted  to 
cotton  or  peanuts,  and  only  a  small  portion  of  the  available  acreage 
is  utilized  for  growing  tobacco.  The  relative  production  of  these 
nione\  crops  depends  largelj  on  their  comparative  market  price-. 

From  a  consideration  of  these  facts  concerning  supply  and  demand. 
it  is  not  deemed  w  ise  under  existing  conditions  to  stimulate  the  culture 
of  this  crop  in  sections  which  are  not  already  growing  it  commercially. 
Probably  no  other  crop  of  equal  money  value  is  so  strongly  influenced 
by  soil  and  climatic  conditions  as  regards  character  and  quality  of  prod- 
ucl and  there  is  no  market  demand  for  types  of  leaf  not  already  well 
known  to  the  t  rade.  Even  if  a  superior  type  can  be  produced,  a  place 
nm-t  lie  found  for  it  on  the  market  and  the  trade  must  be  assured  of 
an  adequate  and  permanent  supply.  These  arc  obstacles  which  it  is 
generally  dilhcult  i"  overcome.  As  regards  the  types  of  leaf  already 
well  recognized  by  the  trade,  the  old  tobacco  districts  are  capable  of 


12  PRESENT   STATUS    OF    TOBACCO   INDUSTRY. 

more  than  meeting  present  demands.  For  these  reasons  caution 
should  be  used  in  undertaking  the  culture  of  tobacco  on  a  commer- 
cial basis  in  new  territory. 

SUMMARY. 

From  the  foregoing  considerations  regarding  the  development  and 
the  natural  division  of  the  tobacco  industry  into  types,  according  to 
the  conditions  under  which  these  are  produced  and  the  uses  to  which 
they  are  put  and  the  relation  of  supply  to  demand  in  each  case,  the 
following  general  conclusions  may  be  drawn: 

There  are  a  number  of  distinct  types  of  tobacco  produced,  each  of 
which  is  adapted  to  certain  definite  trade  requirements. 

These  differences  in  type  are  the  result  of  the  variations  in  soil  and 
climatic  conditions  under  which  the  tobacco  is  grown  and,  to  a  lesser 
degree,  of  different  methods  of  production. 

The  recognized  tobacco-growing  districts  thus  produce  types  of 
leaf  known  by  the  trade  to  possess  definite  qualities  which  adapt 
them  to  definite  purposes. 

Present  trade  requirements  as  regards  type  differences  are  based 
largely  on  the  character  of  the  tobaccos  produced  by  sections  in  which 
tobacco  culture  has  long  been  an  important  industry  and,  therefore, 
have  become  firmly  established. 

The  merits  of  a  product  from  a  new  locality  or  a  new  variety  must 
be  demonstrated  before  it  will  be  accepted  by  the  trade,  and  unless 
such  a  product  is  practically  identical  with  an  established  type,  with 
reference  to  trade  standards,  it  will  generally  fail  to  secure  recognition. 
Moreover,  the  sections  in  which  tobacco  culture  is  already  firmly 
established  are  capable  of  greatly  increasing  their  present  output  of 
the  various  types  if  market  demands  should  warrant  such  increase, 
hence  extension  to  new  territory  should  not  under  present  conditions 
be  unduly  stimulated. 

There  is  a  permanent  demand  for  more  or  less  definite  quantities 
of  certain  well-recognized  types  of  tobacco,  but  any  considerable 
increase  in  output  above  this  demand  reduces  prices  to  a  poinl  w  here 
the  crop  becomes  unprofitahle. 

In  the  few  instances  in  which  a  new  variety,  as  the  White  Burley,  or 
the  product  of  new  methods  of  growing  and  handling,  as  the  bright 
flue-cured  tobacco,  has  temporarily  commanded  fancy  prices,  the 
rapid  increase  in  production  has  reduced  the  profits  to  the  grower  to  a 
level  comparable,  with  those  for  other  similar  types.  In  the  case  of 
the  shade-grown  cigar  tobaccos,  which  for  a  time  were  very  profitable 
in  Florida  and  Georgia,  present  juices  are  such  as  to  leave  little  or  no 
profit  to  the  grower. 

[Cir.  48] 


PRESEJS  I    SI  \  CUS    OF    COBAC<  0    INIM  STRY.  1  3 

There  is  room  for  improvement  in  both  the  yield  and  quality  of  the 
output  of  the  differeni  tobacco-growing  sections.  With  the  excep- 
tion of  small  areas  producing  high-grade  cigar-wrapper  leaf  under 
intensive  systems,  and  for  which  there  is.  relatively,  a  very  limited 
demand,  the  besl  results  are  obtained  by  growing  tobacco  as  a  money 
crop  in  a  properly  planned  rotation  system  with  other  crops  adapted 
to  t  he  locnl  condil  ions. 

Approved  : 

James  Wn  son, 

Secretary  oj  AgricuUurt . 

Washing  roN,  1 '.  (  .,  January  5,  1910. 

[Clr.  i- 

O 


1- 


UNIVERSITY  OF   FLORIDA 


3  1262  08928  9721 


